Cap Rate Calculator

Evaluate real estate investments with capitalization rate analysis.

Calculate

Cap Rate Risk

0%

Property Value

0

NOI (Annual)

0

GRM

0x

Monthly NOI

0

Cap Rate Benchmarks

3-5%

Prime/Core

Low risk, gateway cities

5-7%

Core+

Stable, secondary markets

7-10%

Value-Add

Moderate risk, upside potential

10%+

Opportunistic

Higher risk, higher return

Documentation

Understanding Cap Rate

Cap Rate = NOI ÷ Property Value × 100

Property Value = NOI ÷ Cap Rate × 100

NOI = Gross Income - Vacancy - Expenses

💡 Pro Tip

Cap rate doesn't include mortgage payments or taxes. It measures the property's return independent of financing.

Key Terms

  • NOI: Income minus operating expenses (before debt service)
  • GRM: Gross Rent Multiplier = Price ÷ Annual Gross Rent
  • Cap Rate: Unlevered return on property value

Last Updated: February 2026 • Cap rates vary significantly by property type and location.

How to Use

About the Cap Rate Calculator

What it calculates

This cap rate calculator models mortgage payments, rental yield, and buy-vs-rent scenarios for property decisions. Calculate cap rate for real estate investments.

When to use it

Use when evaluating home loans, investment properties, or comparing renting versus buying.

Example

Adjust the inputs above to model your specific scenario with the Cap Rate Calculator.

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